On February 22, 2002 the Supreme Court of Canada released its reasons in the landmark case of Whiten v. Pilot Insurance Co., ending a year long cliffhanger for the insurance industry. The appeal was heard on December 14, 2000 and since that time, lawyers and claims professionals alike have pondered the significance of the delay.
Cologne, Germany-based Gerling Versicherungs Beteiligungs A.G. — which operates globally in the primary insurance, reinsurance and life sectors — has been put on the selling block by one of the company’s major shareholders, Deutsche Bank, a statement released by the…
In the wake of the Supreme Court of Canada’s decision not to allow an appeal in the case of McNaughton v. The Co-operators General Insurance Company of Canada, similar suits are now being launched in Ontario and Alberta. The case,…
As part of its lobby effort to persuade North American governments to back terrorism reinsurance, the Risk and Insurance Management Society (RIMS) recently asked Canadian members to comment on their views. Although confidential, the survey did show that Canadian RIMS…
“The world was on September 9th a dangerous place, full of operational and financial risks. What changed was the address of terrorism. Terrorism was no longer simply on TV, it was and is now part of our real lives.” So said David Mair, outgoing president of the Risk and Insurance Management Society following the September 11 terrorist attacks. Certainly the insurance world has been turned on it axis by those events. What was shaping up to be a hardening market was suddenly a market in chaos, and risk managers were left struggling to catch up with rapidly escalating rates, tightening terms and a severe lack of capacity. Added to this is the disappearance of terrorism coverage and the seeming ambivalence of North American governments to the plight of insurers and their commercial policyholders.
Insurance contracts are sold by insurers to provide peace of mind to the buying public, the summary decision court papers applying to the Whiten v. Pilot final appeal case indicate. Specifically, the Supreme Court of Canada, which recently upheld $1…
The Supreme Court of Canada has restored a jury award of $1 million in punitive damages which had been made against Pilot Insurance Co. The cross-appealed Whiten v. Pilot case has been closely watched by insurers due to the magnitude…
The Supreme Court of Canada has restored a jury award of $1 million in punitive damages made against Pilot Insurance Co. The Whiten v. Pilot case has been closely watched by insurers due to the magnitude of the punitive award.A…
More than 40 U.S. state insurance regulators have now a approved the terrorism risk exclusions wordings that had been drafted by the Insurance Services Office (ISO) and released just prior to the yearend deadline when most reinsurance covers for this…
Since automobiles became the predominant means of transportation in North America, disputes have arisen between automobile and general liability insurers from time to time over losses related to the use or operation of a motor vehicle. A recent court decision, which will require specific exclusions to be made to future CGL policies, goes back full circle to a case decision made more than 40 years ago.
The deadline facing the Canadian government to introduce a form of reinsurance cover for terrorism risks has come and gone — without any response from the government. Primary insurers acting through the Insurance Bureau of Canada (IBC) have been engaged…
With the January 1st deadline for when the vast majority of reinsurance treaty renewals take effect having come and gone without any response from the federal government on providing an alternative financing source for terrorism risks, primary insurers have begun issuing policy exclusions on both commercial and personal lines of cover — the consequence being that large parts of both the small and large business sectors, as well as individuals, have now been left uninsured to potential terrorism losses. While discussions between insurers and the federal government continue into the new year, it seems clear that the government’s future involvement, if any, will be limited to “high risk target” exposures, and that the general terrorism exclusions implemented by insurers in Canada will stay in place. How will this affect the property and casualty insurance industry in Canada? CU approached company CEOs and several organizations impacted by the withdrawal of reinsurance terrorism cover to determine how they will deal with the problem.